Question

______ in the budget is an important measure of deficit.

Options

• Revenue deficit

• Fiscal deficit

• Primary deficit

• None of the above

Answer 1

A fiscal deficit in the budget is an important measure of deficit.

Explanation:

The fiscal deficit in the budget is a crucial indicator of deficit. In terms of fiscal deficit, the IMF and World Bank normally impose targets for the budget deficit. The difference between the government's total expenditure and total revenues, excluding borrowings, is known as the fiscal deficit. Total Budget Expenditure − Total Budget Receipts (excluding borrowings) = Fiscal Deficit or Fiscal Deficit = Borrowings